How To Secure Your Account from UPI Frauds

The advent of Unified Payments Interface (UPI) has revolutionized the way we handle our daily transactions. As an easy and instant online payment platform, UPI has gained immense popularity in India. However, with the increasing adoption of UPI, the number of fraud cases has also spiked. To secure your account from UPI frauds, it’s crucial to be aware of the potential risks and take necessary precautions.

Understanding the UPI System

Introduced in 2016 by the National Payments Corporation of India (NPCI), UPI is a real-time digital payment system that allows users to transfer money instantly between bank accounts using a virtual payment address (VPA) linked to their bank account. Regulated by the Reserve Bank of India (RBI), UPI transactions are conducted through various UPI-enabled apps such as Google Pay, PhonePe, Paytm, and bank-specific UPI apps.

To use UPI, users need to create a UPI ID using their bank details and registered mobile number. Once registered, a UPI Personal Identification Number (PIN) is generated, which is used to authenticate transactions.

The Dark Side of UPI: Frauds and Scams

While UPI has made our lives easier, it has also given rise to numerous fraud cases. Cybercriminals are constantly devising new ways to deceive users and steal their hard-earned money. From phishing scams to SIM cloning, there are multiple ways fraudsters can exploit the UPI system.

Some common types of UPI frauds include:

1. Phishing Scams: Fraudsters send unsolicited emails or messages with malicious links that look similar to legitimate websites or businesses. Unsuspecting users click on these links and end up sharing their sensitive information, leading to financial loss.
2. Remote Screen Monitoring: Scammers pose as bank representatives and persuade users to download third-party applications for verification or grievance resolution. These unverified apps grant the fraudsters remote access to the user’s phone and the information stored on it.
3. Deceptive UPI Handles: Fraudsters create fake social media pages or websites that resemble genuine businesses. Users who fall prey to this scam end up sharing their personal information and UPI handles with these fraudulent entities.
4. Fake Calls: Scammers call users pretending to be bank employees or government agents, asking for their UPI PIN or One-Time Password (OTP). Once they gain access to the user’s bank account, they proceed to steal their money.
5. Money Mule: In this elaborate fraud technique, victims are duped into laundering stolen or illegal money through their bank accounts. Fraudsters persuade victims to receive money in their account and transfer it to other accounts, often promising attractive commissions. When the fraud is detected, the innocent victims become the subject of police investigations.
6. SIM Cloning: This sophisticated fraud technique involves cloning the user’s SIM card to compromise their phone and obtain their bank account information. The fraudsters then use this information to reset the UPI PIN and carry out unauthorized transactions.

10 Tips to Secure Your Account from UPI Frauds

In order to protect yourself from UPI frauds, follow these essential security measures:

1. Never Share Your UPI PIN or OTP

Avoid sharing your UPI PIN or OTP with anyone, even if they claim to represent a bank or government institution. These entities will never ask for your PIN or OTP. Be cautious of callers trying to instill fear about losing account access or missing important updates.

2. Use Authentic UPI Apps

Download UPI apps only from trusted sources like the Google Play Store, Apple App Store, or your bank’s official website. Refrain from downloading apps from unknown sources, such as SMS links or suspicious websites, as they might be fake and lead to fraud.

3. Regularly Change Your UPI PIN

Changing your UPI PIN every month or at least every quarter adds an extra layer of security to your account. If you suspect unauthorized access, change your UPI PIN immediately.

4. Set UPI Payment Limits

Enable daily transaction limits for your UPI account to minimize the impact of fraud in case you fall prey to one.

5. Verify Recipient Details

Always double-check the recipient’s details, such as their UPI ID, name, and bank account number, before initiating a transaction. Manually add beneficiaries instead of using third-party applications or websites.

6. Be Cautious of Payment Requests

Only proceed with payment requests when you’re confident about the identity of the person making the request. Use spam filters in your UPI app to identify and block fraudulent requests. Remember, you don’t need to click ‘pay’ or enter your PIN to receive payments.

7. Don’t Use Public Wi-Fi for UPI Transactions

Public Wi-Fi networks are often insecure and vulnerable to hacking. Avoid using public Wi-Fi to make UPI transactions, as it makes it easier for hackers to access your device and steal sensitive information. Use secure and trusted networks for UPI transactions.

8. Keep Your Device Secure

Set a strong device lock password, PIN, or biometric lock, such as a fingerprint lock, to prevent unauthorized access to your UPI apps. Additionally, avoid leaving your devices unattended in public places.

9. Beware of Phishing Scams

Do not click on suspicious links or emails from unknown sources. Be vigilant about unsolicited messages or calls asking for sensitive information, and double-check the sender’s information before clicking on any links. Report any suspicious messages or emails to your UPI app or bank.

10. Monitor Your Transaction History

Regularly review your transaction history and report any unauthorized transactions to your bank immediately.

What to Do If You Suspect UPI Fraud

If you suspect fraudulent activity on your account, take the following steps:

1. Immediately inform your bank and the National Cyber Crime Helpline. They will raise a dispute and block the card linked to your UPI account.
2. If the fraud is caused by bank negligence or a third-party breach, notify your bank within three working days. You may be eligible to receive a full refund.
3. In case you don’t receive a satisfactory response from your bank or payment service provider, you can approach the RBI Banking Ombudsman.

Conclusion

Prevention is better than cure. Stay vigilant and follow the safety tips mentioned above to secure your account from UPI frauds. By being aware of the potential risks and taking necessary precautions, you can enjoy the convenience of UPI transactions without jeopardizing your financial security.